Happened in AI

NewsGovernment

US orders civilian federal agencies to remove DeepSeek products, including tools built on its models

A Homeland Security order published on 20 October bars DeepSeek from civilian federal purchasing and requires agencies to remove its products, though the notice does not define which third-party tools count.

Evidence: 4 sources · 1 official record · 3 independent reports · 3 open questions

Timeline of the DHS order excluding DeepSeek products from civilian federal systems How the DeepSeek exclusion order became public Civilian federal agencies only; national security systems are not covered. 2018 Supply chain security law (FASCSA) 24 JUL 2026 DHS order dated (not yet public) 19 OCT Filed for public inspection 20 OCT Published in Federal Register Covers DeepSeek, its affiliates, and third-party products developed using DeepSeek. Which derived products count is not defined in the notice.
How the DeepSeek exclusion order became public. Source: Federal Register. Happened in AI · Original graphic

What happened

  • On 20 October, the Federal Register published a Department of Homeland Security notice of an order excluding DeepSeek products from federal civilian procurement and requiring their removal from agency IT systems.
  • The order is dated 24 July 2026 and was issued under the Federal Acquisition Supply Chain Security Act of 2018 (FASCSA).
  • It covers DeepSeek's own products, those of its affiliates, and third-party products and services developed using DeepSeek implementations.
  • It applies to civilian executive-branch agencies, not to national security systems, and does not restrict companies or the public.

Why it matters

It applies a supply-chain security law to an AI model developer, and because it reaches products built on DeepSeek's open-weight models, agencies and contractors now have to work out which tools in their supply chain are affected.

What is confirmed and what is claimed

Confirmed

  • The notice of the order appeared in the Federal Register on 20 October as document 2026-21447 (Federal Register; also reported by TechCrunch and CyberScoop). 1234
  • The order excludes DeepSeek from civilian agency procurements and requires removal of DeepSeek, affiliate, and DeepSeek-derived third-party products from civilian agency IT systems (Federal Register notice; consistent across coverage). 14
  • The order was issued under FASCSA, and federal contracts carrying FAR clause 52.204-30 bar contractors from using products covered by such an order unless a waiver is granted.
  • National security systems are outside the order's scope.

Claimed, not independently verified

  • According to news coverage of the order, DHS cited risks including possible transfer of sensitive data to the Chinese government, intelligence gathering on US persons, and vulnerabilities in the models. These are described as potential threats; the notice does not show that any agency data was actually leaked.
  • DeepSeek's response, if any, did not appear in the reporting we reviewed.

The order uses a 2018 law built for supply-chain threats, not a new AI rule. Under FASCSA, an agency head can bar a product from federal civilian purchasing and order it out of agency systems. DHS signed the order in July. It became public on 19 October, when the notice was filed for public inspection, and was formally published the next day.

What makes the order unusual is its reach. Earlier restrictions, such as the device bans some departments imposed in 2025, targeted DeepSeek's own chatbot app. This order also covers third-party products "developed using DeepSeek implementations." DeepSeek publishes open-weight models, so components derived from them can end up inside software sold by other vendors, often without being labeled.

Context

The government's main tool for reaching contractors is the FAR clause that already sits in many federal contracts: it bars contractors from using products covered by a FASCSA order on that work unless a waiver is granted. The order does not apply to the Defense Department's national security systems, to private companies outside federal work, or to the public.

For the questions to ask when agencies buy and use AI, see our guide to AI in government.

What to watch

  • Whether DHS or CISA issues guidance defining which derived models and products are covered.
  • How many agencies ask for relief, and whether contractors start certifying that their products contain no DeepSeek-derived components.
  • Whether other model developers are reviewed under the same authority.

What we don’t know yet

  • Which third-party products count as "developed using DeepSeek implementations". The notice does not define the phrase, and many tools are built on or fine-tuned from open-weight models.
  • Why the order, dated 24 July, was published only in October. CyberScoop reported that the notice includes a letter dated 26 June, which suggests an earlier start; the dates in coverage differ.
  • How many agencies were using DeepSeek-based tools, and how many will seek relief.

Evidence and sources

  1. Regulatory record Notice of Order Regarding Exclusion and Removal of DeepSeek Products From Federal Civilian Executive Branch Information Technology Systems and Procurements Federal Register (US Department of Homeland Security) ·
  2. Independent reporting US orders federal agencies to remove China's DeepSeek AI from their systems TechCrunch ·
  3. Independent reporting DHS to ban DeepSeek from federal civilian agencies CyberScoop
  4. Independent reporting DeepSeek deep-sixed at all US federal civilian agencies The Register ·